Tuesday, 10 September 2019
How Not to Pay Retail by Jane Spence Essay Example | Topics and Well Written Essays - 750 words
How Not to Pay Retail by Jane Spence - Essay Example However, with the changing patterns of prices, different products may have different Ã¢â¬Ëbest buying timesÃ¢â¬â¢. For example, the best time to buy a compact disc is a few days after it has come to the market. For digital cameras, the best time to buy is the sprint where new models are produced and prices on the old stock are reduced. Ã The article gives some very common sense examples of how someone who wishes to be an early adopter of the latest technology gadget will have to pay a premium over someone who wishes to stay one generation behind the curve. For example, the article reports that the prices of video games fall on average by 30% every three to four months as newer titles are released on to the market and demand for older titles is reduced. Ã In the apparel industry, the increase of the amount of clothing sold on sale shows that retailers have to look at how and when they decide to put items on sale for their customers since clothes are most likely to be bought when they have been reduced from their standard retail prices. In a market where more than 60% of all clothes are sold on sale, market share is most likely to go to a retailer who has sales often and gives good discounts over regular prices. Ã Another good practice which can be used by retailers to preserve market share is the idea of bundling where one product at a sharp discount is bundled with another product with a high margin to gain a competitive advantage. In this manner, not only can the retailer look at sustaining its market share for a certain type of product, it can also seek to expand its market share for allied and complementary goods at the same time. Ã In some cases, the nature of the product itself may bring price competition to the forefront since it would be the only manner in which sellers can compete.